Auriant Mining är aktuella med en nyemission gällande 178 MSEK, 71,2 miljoner aktier á 2,5. Bolaget står i startgroparna inför en period karaktäriserad av flertalet nyckelinvesteringar mot uppstart av två ytterligare gruvor innan 2022. I en intervju med VD Sergey Ustimenko framgår det att delar av emissionen ska användas för investering i en ny mer effektiv utvinningsteknik.
“We aim up upgrade production facilities on our Tardan mine in order to change technology from heap leach to CIL-technology and increase recovery of gold from our resources from existing 65% up to 90% (or more). It will increase production, cash flows and life of the mine.” – CEO Sergey Ustimenko.
– Sergey Ustimenko CEO of Auriant Mining.
For those that are not familiar with Auriant Mining, could you describe what the company does?
Auriant Mining is junior gold producer domiciled in Sweden with all its mining operations in Russia. We have 4 gold properties:
Tardan: our currently producing mine
Solcocon: recently restarted, which also have mineable resources and great upside potential.
Kara-Beldyr: have sufficient mineable resources, over 25 t AU, and ready to start construction.
Uzhunzhul: A greed field asset
Our total resources amount to 53 t AU with exploration potential of another 80 t AU. Last year production was 1 t AU/year. Existing resource base allows company to grow its production up to 3 t AU/year and potentially up to 5 t AU/year.
Do you believe there are more recourses in the current mines than Auriant Mining is currently aware of?
Russia has well established methodology of assessment of natural resources – let’s don’t forget that Russia is one of the largest world mining countries as well as largest oil and gas producer. This methodology is used to make sure that assessment of natural resources is made in correct way. So, I do not think that existing resource base is under or over estimated. However, we believe that our gold assets have great exploration potential – especially Kara Beldyr and Solcocon.
Could you please describe the geographical perquisites where Auriant Mining is operative?
We operate mines and exploration assets located in the Siberian Federal district (Russia). There are no political risks specific for these regions. They are ordinary parts of the federation. It also worth to mention that Auriant Mining and its subsidiaries are not subject to sanctions and limitation imposed by US and some European countries starting from 2014.
Furthermore, how is the infrastructure in the area?
Some of our assets are locates in areas with well-developed infrastructure and easy access to transport logistics (Tardan, Solcocon, Uzhunzhul), while Kara Beldyr is located in more remote area. During construction phase of Kara Beldyr development the company shall build up to 40 km of unpaved roads to establish supply of the mine.
You have announced a new issue of shares of approximately 178 MSEK, underwritten to an extent of 80 %. Could you describe the investments that will be rolled out with this money?
We aim up upgrade production facilities on our Tardan mine in order to change technology from heap leach to CIL-technology and increase recovery of gold from our resources from existing 65% up to 90% (or more). It will increase production, cash flows and life of the mine.
Could you describe the CIL-technology and the implications it would have on the operation?
In CIL-process the ore is grinded / milled down to 70 microns and chemical solutions are applied in tanks. CIL provides for better recovery and faster cycle of recovery. Also it is more ecological friendly as cyanide solutions are applied in closes cycle. Investments in introduction of CIL at Tardan will increase Auriant’s profitability.
Could you describe the progress made in Tardan? Furthermore, do you see a possibility in that Auriant Mining will be able to replicate this story on Kara Beldyr and Solcocon?
Production at Tardan grew from 412 kg in 2012 to 1078 kg in 2016. We added almost 5 t of mineral resources last year and we continue to explore Greater Tardan. With upgrade in technology we will be able to further production and mine life with increased efficiency.
Kara Beldyr, which is located in Tyva (same area as Tardan) will in large extend share management with Tardan. Having experience of working in Tyva with same geological type of deposit, knowledge of specifics of local labour market and infrastructure will certainly help Kara Beldyr to succeed.
With Solcocon we learnt very important lesson that we shall pay close attention to choice of technology. Laboratory test we made last year shows that recovery from Solcocon ore can be increased up to 80 – 82% with CIL technology, which will make it a profitable mine. We restarted exploration program on Solcocon this year with the aim to increase its resource base suitable from CIL-processing and hope that by the end of the year we will be able to report encouraging results.
What is the main risk in short- and long-term for the company not to succeed with its desired expansion and extraction plans?
Capital availability. We have good resources; we just need capital to develop them.
In what position is Auriant Mining in 5 years?
We have to succeed on commissioning new mine, Kara Beldyr. After commissioning the mine Auriant will stay in line with other peers and raise its shareholders value. Production shall reach 3 t AU/year.
Could you please list three bullets for why an investor should invest in Auriant Mining?
– Substantial resources 53 t AU which allow to increase production up to 3 t AU/year and probably up to 5 t AU/year (after re commissioning of Solcocon).
– Substantial upside potential
– Low cash costs, weak local currency environment provides for better return than in other gold mining countries.
Mer information om bolaget
Mer information om Auriant Mining: http://www.auriant.se/eng/
Pressmeddelande om emission: http://www.auriant.se/upload/iblock/a1f/a1f6c7bc8654a7c8ab61fd0eb1af5dcc.pdf